New York Stock Exchange, Wall street, Manhattan, New York, USA (Getty Images)
Wall Street's major stock indexes closed mixed Tuesday, as more big companies delivered their financial results for the last three months of 2022 amid lingering concerns about a potential recession.
The S&P 500 slipped less than 0.1%, its second loss in three trading days. The Dow Jones Industrial Average rose 0.3% and the Nasdaq composite fell 0.3%. Small company stocks also lost ground, with the Russell 2000 shedding 0.3%
The decline for major indexes marked a reversal from Monday, when a tech company-driven rally more than made up for the S&P 500's losses last week.
Stocks have been volatile as investors try to get a better sense of how inflation is affecting the economy, the potential for a recession and whether the Federal Reserve can ease up on its aggressive interest rate increases.
The latest batch of earnings show that companies continue to struggle with the effects of inflation on consumers and supply chains.
Post-it notes and industrial coatings maker 3M fell 6.2% for the biggest drop among S&P 500 stocks after reporting weak fourth-quarter earnings and announcing job cuts. It is the latest company to announce layoffs as consumers get squeezed by inflation and worries grow about a bigger pullback in spending and a possible recession.
Union Pacific fell 3.3% after reporting disappointing earnings and revenue.
Microsoft rose 4% in afterhours trading after the software and technology giant reported earnings that topped Wall Street's forecasts. It closed down 0.2% in regular trading.
All told, the S&P 500 slipped 2.86 points to 4,016.95. The Nasdaq gave up 30.14 points to close at 11,334.27, while the Dow added 104.40 points to 33,733.96.
The Russell 2000 index of small companies slid 5.16 points, or 0.3%, to finish at 1,885.61.
U.S. crude oil prices settled 1.8% lower.
Trading in more than a dozen companies was temporarily halted on the New York Stock Exchange after an apparent technical issue caused wide swings in their stock prices right as the market opened. Shares in Morgan Stanley, Wells Fargo, AT&T and other companies moved sharply at the open, triggering a halt in trading. The prices corrected after trading resumed. The NYSE says it is investigating the “reported issues” and all systems are now operational.
Markets have been swinging between hope and caution as investors watch to see if the Fed will adjust its inflation-fighting strategy. The central bank has already pulled its key overnight rate up to a range of 4.25% to 4.5% from virtually zero early last year.
The Fed will announce its next rate increase on Feb. 1 and traders expect a quarter-point raise, which would mark a softening of the central bank's pace.
“Where the market and the Fed are having a fairly violent disagreement right now is how long are they going to leave rates at around 5%?” said Scott Ladner, chief investment officer at Horizon Investments.
Long-term bond yields fell. The yield on the 10-year Treasury, which influences mortgage rates, fell to 3.46% from 3.52% late Monday.
Wall Street will get a few economic updates this week that could provide more insight into inflation's impact.
The government will release gross domestic product data for the fourth-quarter on Thursday. Economists expect less than 1% of growth, following 1.9% growth in the third quarter and a contraction during the first half of 2022. Investors will get more updates on personal spending and income on Friday.
——
Elaine Kurtenbach and Matt Ott contributed to this report.
Creating a brand is one of the most important steps in building a business. It can help set you apart from the competition and tells customers what your values are, but many companies don't know how to brand themselves effectively. Tiana Von Johnson, CEO & Chief Brand Strategist of TVJ World, gives expert tips on the do’s and don’ts of branding.
Housing affordability has collapsed to its lowest level on record over the last year. According to the national association of realtors, affordability has dropped by 29%, thanks to surging home prices and mortgage rates. Odeta Kushi, Deputy Chief Economist of First American, breaks down the housing market, and when buyers can expect prices to finally drop.
U.S. markets opened sharply lower on Friday on hotter-than-expected inflation data. The May CPI showed an 8.6% jump in consumer prices year-over-year, higher the expected 8.3%. Mark Howard, Senior Multi-Asset Specialist at BNP Paribas joined Cheddar's Opening Bell to discuss.
U.S. stocks closed Friday at session lows after May CPI data showed inflation in the U.S. has not peaked and is still rising rapidly. For the week, the S&P fell 5.06%, the Dow lost 4.58%, and the Nasdaq dropped 5.60%, marking the worst week since January for all three major indexes. Mike Zigmont, Head of Trading and Research at Harvest Volatility Management, joins Cheddar News' Closing Bell to discuss.
Residents often have to wait on federal assistance after a disaster, but one group has a solution: hiring community members to help clean up and improve their neighborhoods. Resilience Force tackles two problems at once by creating jobs in response to growing climate-related disasters. LaTanja Silvester, director of New Orleans programming for Resilience Force, joins Closing Bell to discuss how the organization creates jobs in communities that need help and higher employment, the importance of creating a "green" workforce, and more.
Benefits brokerage, Nava Benefits, raised $40 million in a Series B round. Nava says it's on a mission to fix healthcare, one benefits plan at a time. The startup is working to bring benefits to small business that are normally available to only Fortune 500 companies. Brandon Weber, Co-Founder and CEO of Nava Benefits, joined Cheddar News' Closing Bell to discuss.
Yung Lim, CEO and Fixed Income Strategist at FolioBeyond, joined Closing Bell to discuss the May CPI report, as inflation is still red-hot going into a key decision from the Federal Reserve about interest rates.
Auction house Christie's will be presenting "Legacy of the GOAT," which will include a rare Michael Jordan signed rookie card and sneakers. Caitlin Donovan, the vice president of Christie's handbags and accessories department. joined Cheddar News to discuss the special memorabilia selection for the NBA great. "He's been a global phenomenon, so he's really shaped '90s culture and streetwear culture," she said. "And we see bidders from every pocket in the world."
Fuel and oil prices have risen almost 17 percent since May, making the national gas prices reach nearly $5 a gallon. Andrew Lipow from consulting firm Lipow Oil Associates joined Cheddar News to discuss the future of gas prices. "The biggest issue on the oil market is really events that are beyond our control, which is what is happening over in Europe," he said, regarding the ongoing Russia Ukraine war. Lipow also said he predicted gas prices to hit $5.05 and that he's focused on the Biden administration's overtures in repairing a relationship with Saudi Arabia.
